97% Artificial Money, 3% real money in UK economy
- Banks create speculative credit. They can either loan money to SMEs, which have limited liability and very high risk, or give it to for housing which comes with certain mortgages behind it. There is a choice between productive, and a speculative investment. Banks prefer the latter, because it’s lower risk as backed by a mortgage, and inflate housing.
- As inflation rises, people have to work harder and harder and pay for goods/services more, and the financial system ensures money keeps flowing from the poor to the rich. The next generation is going to have to work much harder than we have to.
- In recession, poor people have to take on more debt to survive. In boom times also, they don’t get to enjoy the benefits of money. Poor people have to pay when the financial system collapses due to highly speculative derivatives, and the rich keep benefiting in prosperous as well as down times.
- Banking crisis pushed 100 million people into poverty. The mortality rates also increased for poor people. The banking system doesn’t only create more poor people, it kills them.